A Partnership Company Has Three Partner with Profit Share Ratio 40:40:30 and one of the partner treat himself as employee of the firm and get salary of Rs17600/- per month and he is also getting benefit of EPF. Can his act is correct. Can he is treated as employee and get the benefit of Employees' Provident Fund.
Under the partnership Act, the partners as mentiond in partnership Deed are the genuine partners that can carry on the business of the firm. the partners that take part actively in teh business of the firm are the owners of the firm, hence the partner himself cannot be termed as an employee of the firm, because a person cannot be at the same time a partner as well as a employee.
So the Act of the partner is incorrect in law, & he can't be treated as an emplpoyee of the frim & get the benefit of EPF.
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